ANSWERING ANY OF THESE QUESTIONS WOULD BE HELPFUL! THANKS!

Unbiased Expectations TheorySuppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:

₁R₁=4.25%,E(₂r₁) =5.25%,E(₃r₁) =5.75%,E(₄r₁)=6.10%

Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?

5.3352%

5.3375%

1.4910%

6.1000%

Value a Constant Growth StockFinancial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 12.00 percent. Their recent dividend was $1.73. What is the value of their stock when the required rate of return is 15.00 percent?

$57.67

$.6459

$64.59

$.5767

Rank from lowest credit risk to highest credit risk the following bonds, with the same time to maturity, by their yield to maturity: Treasury bond with yield of 5.55 percent, IBM bond with yield of 7.95 percent, Trump Casino bond with a yield of 9.15 percent and Banc Ono bond with a yield of 6.12 percent.

Treasury, Trump Casino, Banc Ono, IBM

Trump Casino, IBM, Banc Ono, Treasury

Treasury, Banc Ono, IBM, Trump Casino

Trump Casino, Banc Ono, IBM, Treasury

MedTech Corp stock was $51.85 per share at the end of last year. Since then, it paid a $1.35 per share dividend. The stock price is currently $63.40. If you owned 200 shares of MedTech, what was your percent return?

26.04%

20.35%

24.88%

21.29%

Determinants of Interest Rate for Individual SecuritiesA particular security's default risk premium is 3.10 percent. For all securities, the inflation risk premium is 1.85 percent and the real interest rate is 2.80 percent. The security's liquidity risk premium is .50 percent and maturity risk premium is .35 percent.

The security has no special covenants. What is the security's equilibrium rate of return?

8.10%

5.50%

1.72%

8.60%

Expected ReturnIf a company's current stock price is $26.00 and it is likely to pay a $1.75 dividend next year. Since analysts estimate the company will have a 14% growth rate, what is its expected return?

2.00%

20.73%

6.73%

14.00%